Stratasys Inc.: Cantor Fitzgerald Suggests Stratasys is Well-Positioned for Growth in the 3D Printing Industry
Cantor Fitzgerald, a leading financial services firm, has recently initiated coverage of Stratasys Inc. (NASDAQ: SSYS), a pioneer in 3D printing technology. They have given the company an Overweight rating and set a price target of $24.00. According to Cantor Fitzgerald’s analysis, Stratasys is well-positioned to benefit from new product cycles and a favorable industry climate. This suggests that the company could experience accelerated growth in the coming years.
Stratasys has established a strong presence in the market with its Fused Deposition Modeling (FDM) technology. The company has expanded its offerings through in-house development and strategic acquisitions, allowing it to broaden its portfolio. Recently, Stratasys has launched a range of new printers, including Stereolithography (SLA), Digital Light Processing (DLP), and Selective Absorption Fusion (SAF) printers. In addition, the high-end FDM F3300 printer is expected to drive growth in 2024 and beyond.
The Covid-19 pandemic has highlighted the importance of additive manufacturing as companies sought to address supply chain disruptions. By reshoring or nearshoring operations, businesses have turned to 3D printing as a solution. This increased demand has positioned additive manufacturing as a viable option for overcoming supply chain challenges.
Despite a growth slowdown in 2023, primarily due to external factors such as the Ukrainian war, rising interest rates, and recessionary fears, there is a sense of pent-up demand within the industry. Cantor Fitzgerald believes that once economic conditions become more favorable, this accumulated demand could surge. Stratasys’ new product cycles are expected to capitalize on this latent demand, ultimately enhancing the company’s growth and profitability.
According to InvestingPro data, Stratasys currently holds a market capitalization of $877.01 million. Its Price to Book ratio for the last twelve months as of Q3 2023 stands at 0.99, indicating that the company’s stock is trading close to its book value. Despite a negative P/E ratio of -7.90, reflecting its unprofitability over the last twelve months, analysts predict a turnaround with net income expected to grow this year. Investor confidence in Stratasys has been evident, with a strong return of 23.71% over the last three months, likely driven by the anticipation of new product cycles and a favorable industry climate.
Additionally, the InvestingPro Tips reveal that Stratasys holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This suggests a stable financial position that could support the company’s growth initiatives.
With Cantor Fitzgerald’s optimistic outlook and Stratasys’ strategic position in the 3D printing market, the company appears well-equipped to capitalize on future opportunities and drive growth in the years ahead.
Analyst comment
Positive news.
As an analyst, it is expected that Stratasys will experience accelerated growth in the 3D printing industry due to new product cycles and a favorable industry climate. The Covid-19 pandemic has increased demand for additive manufacturing, positioning Stratasys as a viable solution for supply chain challenges. Despite a slowdown in growth in 2023, pent-up demand and favorable economic conditions are expected to drive surge in the industry. Stratasys’ strong financial position and market position indicate that the company is well-equipped to capitalize on future opportunities and drive growth in the coming years.
